Sales of vehicles sold by General Motors, Ford Motor Co., and Chrysler Group dropped during April but Toyota continued to build on its foothold in the U.S. thanks to the strong sales of fuel-efficient vehicles.


"The market for lower-priced, higher-mileage vehicles is showing strength, as are hybrids," said Jim Press, Toyota Motor Sales president and COO.

With a sales total of 219,965 units in April, Toyota exceeded Chrysler Group sales, which hit 190,095. While not the first time that Japan's top automaker has totaled more sales than the smallest of the former Big Three, the recent momentum at Toyota suggests that it could overtake the Chrysler Group in year-end totals.


To that end, both Toyota and Chrysler spokesmen were noncommittal. "We don't really care" that Toyota's sales are increasing, said Jason Vines, Chrysler Group spokesman. Vines noted that strong sales of the new Caliber compact and a slew of upcoming new models would keep Chrysler's sales momentum strong for the rest of 2006.

Toyota's Xavier Dominicis told TheCarConnection that "we are our only competition." While sales of the hybrid Prius perked along at production-constrained levels, Dominicis said that like other brands, Toyota had experienced some softness in sales of large SUVs like the Sequoia, which also is near the end of its life cycle.

Paul Ballew, GM's general director of market analysis, said Wednesday that total sales were still below expectations as industry sales reached 17.3 million units. "Sales were a little below what we expected," said Ballew, who noted that sales of sport-utility vehicles felt the pressure of rising gasoline prices.

The numbers, please

GM reported that its April sales fell seven percent compared to year-ago levels. Total car sales were down 18 percent, and truck sales were up two percent. "Given that the industry came in somewhat below our initial expectations, we are pleased that our retail sales were in line with the targets established in our North America turnaround plan," said Mark LaNeve, General Motors North America vice president, Vehicle Sales, Service and Marketing.

Ford Motor Co. also reported its sales dropped seven percent in April but noted its passenger-car sales increased eight percent. Truck sales dropped 15 percent, though, as sales of SUVs continued to decline.

George Pipas, Ford sales analyst, noted that sales of truck-based SUVs have been falling for past four years. "The glory days of product mix are over. Clearly there are a lot of headwinds in this segment," Pipas said. "Cars will outperform trucks for the rest of the decade."

Pipas, however, noted Ford's hybrid sales have seen three months of double-digit sales increases and the success shows there is a strong demand for affordable, fuel-efficient hybrid vehicles that deliver both economic and environmental benefits, he said.

Chrysler Group reported an eight-percent drop in overall sales but the company's car business posted a 37-percent sales gain thanks to the early success of the Dodge Caliber. Calibers are only spending six days on dealer lots, DaimlerChrysler officials said.

However, sales of SUVs and minivans dropped, prompting Chrysler to launch a "Zero Percent is Back" incentive program on most Chrysler, Jeep, and Dodge vehicles. Customers can choose from a variety of cash-back options ranging from $750 to $5000 on selected models, or qualified customers can select zero-percent financing for 60 months on selected models through Chrysler Financial. The program runs through July 5.

"Gas prices and interest rates are challenging consumers' spending habits and affecting everything from groceries and household goods to some sectors of automotive sales," said Gary Dilts, Chrysler group vice president of sales.

Among other brands, American Honda reported a 4.7-percent sales increase. "Honda light trucks are some of the most fuel-efficient in their segments, and that is definitely something customers are responding to in this time of rising fuel prices," said Dick Colliver, executive vice president of American Honda.

Suzuki led the way during April, posting a 32-percent increase in sales. Mitsubishi confirmed a surprising 17.5-percent increase while Nissan and Hyundai sales were essentially flat. Mercedes-Benz, Audi, and BMW all reported sales increases.